Exchange rates represent the value of one currency relative to another. They determine the rate at which one currency can be exchanged for another in the foreign exchange market, as a result, the strength of a country’s exchange rate, particularly against the dollar, highlights its leverage on global trade.
Exchange rates play a pivotal role in the global economy, influencing international trade, investments, and tourism. Understanding how exchange rates work and their impact on various aspects of the economy is crucial for businesses, travelers, and policymakers alike.
Exchange rates are dynamic and reflect the interplay of various economic and geopolitical factors. Understanding exchange rates and their impact is essential for businesses engaged in international trade, travelers planning trips abroad, and policymakers formulating economic strategies.
